Is the cloud more secure than on-premise?

Both can be secure if managed well. The cloud offers built-in security features, but some businesses prefer on-premise for sensitive data.

How do I move from on-premise to the cloud?

Migration involves assessing your needs, planning the move, and using a strategy like lift-and-shift or refactoring.

How does cloud storage differ from on-premise storage?

Cloud storage is kept online by a provider, and you can access it through the internet. On-premise storage is kept and managed on your own local servers.

On-Premise vs Cloud: Choosing The Right Solution in 2024

According to statistics, 83% of business workloads are supposed to be in the cloud by 2025, so deciding between on-premise vs cloud solutions is a complex process now. On-premise systems can provide deep-level control and customization, but these advantages usually come with an extremely high initial cost- a setup and maintenance cost. Meanwhile, the cloud is revolutionizing business operations, with 94% of companies reporting better security upon moving to the cloud. Not just that, it scales the business resources and reduces IT costs by up to 30%. This decision is not just about choosing a technology but finding the right solution to help your company grow and become efficient in this rapidly changing world. So, let’s quickly understand everything there is to know before choosing between on prem vs cloud.

What is On-Premise Infrastructure?

On-premise infrastructure means keeping IT systems and resources like servers and storage within your own facilities. This setup gives you complete control and can meet strict regulations, but it comes with high costs and requires regular maintenance. Unlike cloud solutions, it’s less flexible and more challenging to scale.

Key Characteristics of On-Premise Solutions

What is Cloud Infrastructure?

Cloud Infrastructure is when a company uses services like servers, storage, databases, and software provided by another organization instead of owning them. The company pays for these services only when needed, like renting instead of buying. You depend on third-party service providers like AWS, Azure, or GCP to store and manage data.

Which of these cloud service models is the correct solution for your business? Read our comprehensive guide to know which models are the right choice!

Key Characteristics of Cloud Solutions

Know whether your legacy systems are cloud-ready with Cloud Readiness Assessment, and understand the advantages of modern solutions when comparing on premise software vs cloud environments.

On Premise vs Cloud: Table of Comparison

There are various advantages of cloud vs on premise, but a quick comparison table can give you a brief idea of their differences.

Aspect	On-Premises	Cloud
Control	Full user control	Limited user control, third-party involvement
Scalability	Difficult to scale	Easily scalable
Internet Dependency	Internet is not always required	Internet connection is essential
Access	Services are limited to within the enterprise	Services are accessible beyond the enterprise boundaries
Flexibility	Less flexible	Highly flexible
Pricing Model	No subscription fixed upfront costs	Subscription-based with flexible pricing
Updates	Enterprise responsible for hardware/software updates	Third-party handles updates
Cost Structure	Fixed costs	Variable costs based on usage
Data Portability	Data is easily portable	Data portability can be challenging
Learning Curve	A little difficult to learn due to metaprogramming	Easy to learn for newbies as compared to other languages
Deployment Environment	Deployed locally	Deployed on the cloud via the internet
Security	Higher security due to local control	Potentially lower security due to cloud storage
Usage	Common in large enterprises	Preferred by small and mid-sized businesses
Implementation Time	Longer implementation time	Faster implementation

Do you need a cloud migration strategy for better output, but are you unsure whether you have the right option? Read our in-depth differences for a better understanding.

On-Premise vs Cloud: Major Differences

The major difference between on-premises vs cloud is that on-premise requires businesses to own and manage their hardware and infrastructure. In return, the cloud offers a subscription-based model wherein the provider maintains hardware, maintenance, and scaling. Let’s have a look at the other differences.

Infrastructure Ownership

Here, businesses can own and maintain the entire infrastructure, such as servers, networks, and storage. The internal teams manage the hardware, software, and updates. Typically, it takes 3-5 years for the hardware to be replaced, leading to ongoing investment cycles.

In contrast, cloud service providers own and manage the hardware for outsourced infrastructure, while you can rent access. The providers handle the hardware, maintenance, updates, and scaling infrastructure. When comparing on-premise storage vs cloud storage, businesses often find that in between cloud based vs on premise, cloud storage offers more flexibility, scalability, and reduced upfront costs than managing and maintaining on-premise infrastructure.

Cost Structure

Aspect	On-Premise	Cloud
Initial Setup Costs	High capital expenditure for purchasing hardware (servers, storage, networking equipment). Software licenses (perpetual or annual). Infrastructure costs (data center setup, cooling, power).	Minimal upfront costs. The pay-as-you-go model reduces initial capital expenditure. No need for physical infrastructure investment.
Integration	Integration with other systems may need extra setup and infrastructure.	Cloud offers easy, ready-made connections with other systems through APIs.
Maintenance	Continuous costs for hardware upkeep, repairs, and upgrades. Regular software updates and patches. Physical space upkeep.	Cloud provider manages hardware and software maintenance. Included in the service fee. Automatic updates and patches.
Software Licensing Costs	Purchase of perpetual licenses or annual subscriptions for on-premise software. Additional costs for software updates or upgrades.	Subscription-based or usage-based licensing. Often included in cloud service packages. No additional costs for upgrades.
Scalability Cost	Requires purchasing additional hardware and infrastructure for scaling. Complex and potentially costly upgrades.	Instantly scalable, pay for what you use
Security & Compliance Cost	Costs for physical security (locks, cameras, guards). In-house security measures and compliance efforts. Regular security audits and updates.	Provider-managed security measures. Advanced security tools and compliance certifications are often included. Regular security audits and updates handled by the provider.
Long-Term Costs	Cumulative costs for energy (power and cooling), staffing (IT personnel), and regular hardware/software upgrades.	Usage-based costs. Variable costs for data transfer, premium features, and over-provisioned resources. Generally lower long-term due to reduced management overhead.
Hidden Costs	Infrastructure setup (physical space, security). Physical security, disaster recovery solutions. Costs for managing and maintaining IT staff.	Data transfer costs (especially for large volumes). Premium features or additional services. Costs associated with over-provisioned resources or inefficient usage.

This was a detailed cloud vs on premise cost comparison; learn more about cloud migration costs in detail.

This was a detailed cloud or on premise cost comparison; learn more about cloud migration costs in detail.

Scalability

When comparing on premise vs cloud, on-premise has limited scope for scalability. You need to purchase new hardware, upgrade existing systems, and configure the infrastructure, which are time-consuming and expensive. Also, scaling up involves a delay due to procurement cycles and installation processes, and scaling down does not reduce costs, as the hardware is already purchased.

On the other hand, cloud environments offer near-instant cloud scalability. Businesses can quickly adjust their resource usage based on real-time needs, adding or removing storage, compute power, or networking capacity as necessary. Also, some providers offer automatic scaling, so resources are added or removed based on the current load without requiring manual intervention.

Security and Compliance

When we compare cloud vs on-premise security, we see that on-premises organizations control their security. They can deploy firewalls, encryption, access controls, and data protection protocols as they see fit. This means that companies are also responsible for updating security practices, threat monitoring and mitigation, and adhering to industry sectors’ different standards and regulations. This necessitates dedicated IT resources and skillsets to manage patch management, malware protection, and physical security tasks.

Cloud security operates on a shared responsibility model. Cloud providers secure the infrastructure here, while businesses are responsible for their applications and data. From multi-factor authentication and encryption to DDoS protection, the security features go on in cloud services. The globally renowned cloud providers comply with standards and certifications of ISO/IEC 27001, SOC 2, GDPR, HIPAA, etc. Still, how a business uses the cloud should also meet these regulations. Even with such protections in place, data breaches into cloud services occur, which raises the importance of choosing a reliable provider and practicing good cloud governance.

Customization and Control

When comparing on-premise vs cloud, with on premise, several organizations are subject to regulatory requirements regardless of their industry. Some standard regulations include HIPPA, which protects private health information, and FERPA, which regulates student records. Companies under such a regulatory framework must always know where their data resides.

On the other hand, companies using the cloud must make sure their provider follows all necessary regulations. They must keep sensitive information secure and ensure the privacy of customers, partners, and employees is always protected.

Deployment Location

When comparing on-premise vs cloud, on-premise solutions are hosted on the company’s own IT systems. The company uses its resources, space, and power to run these solutions. These are also responsible for maintaining everything related to the system.

Cloud solutions are hosted on remote servers and accessed via the Internet. The cloud provider handles the physical servers and their maintenance, so the companies don’t need space or resources on-site. This allows businesses to scale resources as needed without worrying about the upkeep.

Workflow and Delivery

When comparing on-premise vs cloud, on-premises systems have limited memory, require manual backups, are slower in application deployment and workload management, and are at a higher risk of interruptions.

Cloud solutions offer unlimited memory, automatic backups, on-demand access, quick application updates, and efficient handling of large workloads.

Need a cheat code for migrating? Read our detailed guide to Tips and Tricks to Achieve a Successful Cloud Migration.

Performance

When comparing on-premise vs cloud, on-premise infrastructure offers fast and high-performance access for real-time data processing, but it doesn’t scale or adjust as easily as cloud solutions. Expanding on-premise systems requires a lot of money and time, making it harder to adapt to new needs quickly.

Cloud infrastructure outperforms on-premise solutions with its scalability and flexibility. Thanks to high-performance hardware and advanced optimization techniques cloud providers use, organizations can quickly adjust resources to handle changing demands and peak usage. Global data centers enhance access speeds and reliability, making cloud services ideal for distributed teams and international operations.

Energy Savings

When comparing on-premise vs cloud, on-premise server deployment involves higher energy costs because the organization must manage the power consumption of its servers, which often operate at total capacity. This setup also includes significant maintenance responsibilities related to energy management, such as airflow management to reduce power use.

In contrast, cloud hosting integrates energy savings into the service package. Cloud service providers (CSPs) manage energy and maintenance, reducing the organization’s burden. This results in higher cost savings and more efficient energy use. Cloud solutions are easier to access and save more money for small businesses and large companies compared to on-premise systems, where energy use and cost savings are harder to manage.

Maintenance and Upgrades

When comparing on-premise vs cloud, you’re responsible for all maintenance tasks for on-premise systems, like checking hardware, updating software, and fixing issues. This can be expensive and time-consuming because it requires skilled staff and involves potential downtime. Your team also needs to perform upgrades, which can be costly and disruptive manually.

In contrast, with cloud solutions, the provider takes care of maintenance. This means lower costs and less downtime since updates and repairs are automatically performed. Upgrades are also managed by the provider, applied seamlessly without interrupting your service, and typically included in your service fee, making them more cost-effective and less disruptive. AI in cloud computing makes this even better by automating tasks, improving performance, and managing resources efficiently.

Disaster Recovery

When comparing on-premise vs cloud, on-premise disaster recovery uses physical hardware and off-site locations managed by the organization. It requires a big upfront investment and ongoing maintenance. The internal IT team handles management, which can be complex and resource-heavy. Physical resources limit scaling up and can involve costly upgrades. Manual processes can extend recovery times, and physical adjustments limit flexibility because changes require physical adjustments.

On the other hand, cloud disaster recovery uses virtual resources provided by cloud vendors, lowering initial costs and removing the need for physical hardware. The cloud service provider manages the system, often with automated backups and quick recovery processes. Cloud solutions are easily scalable, allowing businesses to adjust resources without extra hardware. This approach offers more flexibility, making updating and changing disaster recovery plans easier.

Of course, after understanding the differences between on-premise infrastructures and the cloud in such detail, it is important to be aware of the risks with cloud migration and how to manage them.

Hybrid Model: The Best of Both Worlds?

The hybrid model offers a great solution that combines on-premise and cloud setups and offers both benefits. It lets businesses keep important resources or sensitive data on-site while using the cloud for scalable and cost-effective resources. It provides the flexibility of the cloud with the control of on-premise for optimized performance, security, and cost efficiency. A balance of these environments can take an organization closer to an IT strategy that fits their needs and meets variable demands.

Decision-Making Checklist: Cloud vs On Premise

When comparing on-premises vs cloud computing, cloud computing gains popularity, although many companies are still based on-premise, having a partial or whole part of their IT infrastructure. The choice between a cloud and on-premise solution might vary depending on your business, budget, and technical requirements. If you decide to transition to the cloud, our Cloud migration services help you move smoothly and efficiently. But here’s an advanced checklist that you might want to consider when comparing cloud commuting vs on premise:

There are numerous benefits of cloud vs on premise, yet most businesses employ a mix of both cloud and on-premise-finding benefits. Companies might keep sensitive information on-premise while deploying cloud services for high-demand applications or when disasters occur. You achieve the best of both worlds, gaining scalability, flexibility, and control. Know more about the cloud trends and technologies transforming the future.